Wolfe Company issued $10,000,000 of 10-year 7% bonds on January 1, 2018, at a market price of $8,716,468, when the market (discount) rate was 9%. Coupon payments are paid annually on December 31st of each year. On December 31, 2019, due to changing interest rates, Wolfe Company decided to extinguish the debt when the market price of the bonds was quoted 85.